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You are trying to value the stock of XYZ Corp. Total earnings for year 1 are forecasted to be $178 million. You know that the

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You are trying to value the stock of XYZ Corp. Total earnings for year 1 are forecasted to be $178 million. You know that the company plans on paying out 39% of its earnings in the form of dividends and 24% in the form of share repurchases each year, and that all of the growth in future earnings will be through retained earnings. The company's return on new investment is 15%, its cost of equity is 12% and it has 60 million shares outstanding. Given this information, estimate the current share price for XYZ Corp. Round your answer to two decimals (do not include the S-symbol in your answer). Crane Inc. currently only returns cash to its investors in the form of dividends. It pays out 50% of its earnings per share. The return on new investment for Crane is 12.7%. Given this information, estimate the growth rate for the future dividends of Crane. Express your result in percent and round to two decimals (do not include the 9-symbol in your answer)

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